ATHENS, Ga. — A new report reveals that the University of Georgia's School of Medicine is anticipated to have billon-dollar impacts on the state's economy by 2040.
According to a release by the university, an analysis conducted by the nationally recognized consulting firm Tripp Umbach estimates that the school of medicine will generate between $1.8 billion and $2.3 billion in cumulative economic impact on the Peach State by 2040. The report mentioned that improvements to health care, research expansion and job creation across Georgia are the main drivers for economic return.
The report estimates that between 50 to 60% of the anticipated 708 graduates in the years 2030 to 2037 are expected to remain in the state to practice. The additional physicians are projected to generate up to $932.8 million in economic activity, create more than 5,700 jobs and provide up to $34.7 million in state and local tax revenue by 2040.
Although Georgia is the eighth-largest state in the nation by population, it currently ranks 40th for the number of active patient care physicians per capita, a release said.
Of the total number of physicians anticipated to remain in Georgia to practice, approximately one-third will specialize in primary care. The report estimates that those medical practices alone are expected to lead to healthcare cost savings between $255.6 million and $457.2 million. Those savings should occur through early detection and treatment of diseases, better management of chronic diseases and reduced reliance on costly emergency and specialist care.
UGA School of Medicine Founding Dean Shelley Nuss said the school will help advance the health of communities and address Georgian's unmet health needs.
"Too many Georgians face barriers in accessing high-quality health care," Nuss said. "Nine counties in our state have no doctor at all, affecting one in 10 Georgians."
Another way UGA's school is expected to influence the state is through research. The university already has had the highest amount of annual funding from the National Institutes of Health among all public universities without a medical school at $89.5 million in fiscal year 2023.
With the addition of the medical school, it's estimated that NIH funding will increase between $179.3 million and $239.1 million by 2040. In turn, the increase is anticipated to result in a total economic impact of $412.5 million and $550 million from research alone to Georgia's economy.
The report also indicates the school will generate $397.3 million yearly through its operations -- most coming from job creation. The School of Medicine is estimated to support 953 direct jobs and 1,695 indirect jobs statewide by 2040. Direct jobs are listed as full and part-time jobs supported by the school itself whereas indirect jobs are support services, vendors, contractors, hotels, retail establishments and visitors to the medical school.
At UGA, physicians have been training since 2010 under the Augusta University/University of Georgia Medical Partnership. However, the University System of Georgia Board of Regents authorized UGA to establish a new independent School of Medicine back in February.
The university said that many of the required facilities for an independent medical school already exist due to the partnership with Augusta University but that the school could benefit from a new medical education and research building. The proposed building will be about 92,000 square feet, with roughly 67,000 square feet dedicated to medical education and 25,000 square feet reserved for biomedical research laboratories. The building will feature medical simulation suites, standardized patient rooms, clinical skills labs, a gross anatomy lab, a medical library and more.
In Georgia's General Assembly's fiscal year 2024 amended budget it included $50 million to go toward the $100 million facility. The university said the rest is being matched by private funds from the UGA Foundation, the UGA Research Foundation and UGA alumni and friends.
But in terms of the anticipated economic benefits to the state, UGA President Jere W. Morehead said they're excited about what the future has in store.
"The medical education we provide and the life-saving discoveries we produce will not only improve health but also generate an outstanding return on investment for state resources," Morehead said.
